New York Vehicle Sales Tax & Fees [+Calculator]
One of the most important aspects of dealing with a vehicle purchase is knowing the associated taxes. That includes the state sales tax that is required in your state.
While in some states, the sales tax can be low, while in other states, the sales tax can add thousands of dollars to the cost of the vehicle.
Here, we’ll look at the tax rate for new and used vehicles within the Empire state.
Table of Contents
- How Much Is the Car Sales Tax in New York?
- How to Calculate New York Sales Tax on a Car
- New York Sales Tax Calculator
- Do I Have to Pay Sales Tax on a Used Car?
- Which City or County Has the Highest Tax? Which Has the Lowest?
- Car Sales Tax for Trade-Ins in New York
- Car Sales Tax for Private Sales in New York
- Tax on Rebates & Dealer Incentives
- Other Taxes & Fees for New York
- When Sales Tax is Exempt in New York
- New York EV Rebates & Incentives
- Best Car Deals by Category
- Frequently Asked Questions
How Much Is the Car Sales Tax in New York?
The car sales tax in New York is 4% of the purchase price of the vehicle.
For instance, if you pay $40,000 for a new vehicle, the state sales tax will be $1,600. Note that this state sales tax does not include any county or city tax that may be applied on top of the state sales tax.
How to Calculate New York Sales Tax on a Car
You can calculate the state sales tax on a vehicle purchase by first taking the vehicle's purchase price and then deducting any trade-ins. This will be a portion of your out-the-door costs. From there, you can multiply this cost by 4.5%.
As an example:
- Let’s say you purchase a new vehicle for $50,000.
- Your trade-in vehicle is worth $7,500 and you get a $2,500 rebate.
- That puts your out-of-pocket cost at $40,000.
- However, in New York, the taxable amount is $42,500 (rebate is taxed)
- Now multiple $42,500 by 4%.
- This gives you a state sales tax of $1,700.
New York Sales Tax Calculator
Do I Have to Pay Sales Tax on a Used Car?
Yes. The 4% state sales tax applies to both new vehicles as well as used vehicle purchases.
Which City or County Has the Highest Tax? Which Has the Lowest?
New York City has the highest city sales tax in New York, with a tax rate of 8.875%. That is an additional 4.875% in city tax on top of the statewide 4%.
Oneida County has the lowest county sales tax in New York, with a rate of 4.75%.
Car Sales Tax for Trade-Ins in New York
The value of your trade-in is not subject to state sales tax. Therefore, you can lower your overall tax burden if you include a trade as part of the sale of your vehicle.
For instance, let’s say that you purchase a new vehicle for $50,000, and you get a $10,000 trade-in credit. Then you will only be taxed at $40,000.
Car Sales Tax for Private Sales in New York
Private sales are also subject to the 4% state sales tax. Once you have purchased the vehicle from a private party, you are responsible for paying the state sales tax to the New York State DMV.
Tax on Rebates & Dealer Incentives
In the state of New York, you are only taxed on the out-of-pocket cost of the vehicle. However, this does not include any dealer rebates or manufacturer incentives.
Let’s say that you purchase a vehicle for $50,000 and get a $2,500 rebate after your purchase. That $2,500 will be subject to the 4% state sales tax. So the total taxable amount is still $50,000.
Other Taxes & Fees for New York
Here’s a look at other taxes and fees that you will have to pay whether you are purchasing a new or used vehicle in the state of New York.
Whether you are purchasing the vehicle from a dealership or a private party, you will have to pay DMW/State fees. In the state of New York, the DMV/state fees are the following:
- Registration: $32.50 to $140.00
- Title Fee: $50.00
- Plate Transfer Fee: $10.00
Also, you can be subject to what is known as the MCTD fee or the Metropolitan Commuter Transportation Fee if you live in the following 12 counties:
- Kings (Brooklyn)
- New York (Manhattan)
- Richmond (Staten Island)
Note that if you are transferring your plates and registration from another vehicle, then you do not have to pay the MCTD fee. This fee only applies to vehicles that you have not previously registered.
When you purchase a vehicle at a dealership, the dealership will handle the documentation work on your behalf. The average “Doc Fee” in New York is a relatively low $75 per sale.
However, you have to be aware that dealerships may charge their own “in-house” fees on top of this. Additional fees include advertising fees and destination fees.
While the documentation fees are non-negotiable, you may be able to get out of the advertising and delivery fees.
When Sales Tax is Exempt in New York
There are several exemptions available that will allow you to avoid paying state sales tax:
- If the vehicle is a gift from a family member
- If you paid out-of-state sales tax
- If you were not a resident of New York when the vehicle was purchased
- If you are a member of the U.S. Armed Forces and you are not a resident of the state of New York
- If you leased the vehicle
New York EV Rebates & Incentives
In New York, you can get a rebate of up to $2,000 if you purchase a plug-in hybrid or all-electric vehicle. Currently, the state of New York recognizes 60 vehicle models that qualify for the $2,000 EV vehicle rebate. Check out all EV tax and utility incentives here.
Tax information and rates are subject to change, please be sure to verify with your local DMV.
Frequently Asked Questions
What is the sales tax on cars purchased in New York?
The state sales tax on vehicles purchased in New York is 4%.
Do I have to pay sales tax on a used car in New York?
Yes. Used vehicles are subject to the 4% state sales tax.
Which city in New York has the lowest tax?
Oneida County has the lowest sales tax at 4.5%.
Which city in New York has the highest tax?
New York City has the highest sales tax at 8.875%.
Do I have to pay sales tax on a gifted car in New York?
If you are gifted a vehicle from a member of your family, then you don’t have to pay state sales tax.
How much is registration in New York?
The registration fee in the state of New York is $50.00.
Does a trade-in reduce sales tax in New York?
Yes. The trade-in value of your vehicle will reduce the sales tax on the new or used vehicle that you purchased.
How can I avoid paying sales tax in New York?
You can avoid paying sales tax in New York by purchasing your vehicle out-of-state, having your vehicle gifted to you by a family member, or by not being a resident of the state of New York when you purchased your vehicle. However, be aware that while you may avoid paying sales tax in New York, these methods of purchase or acquiring a vehicle may be subject to other fees.